Ares Capital's Non-Accruals Rose to 2.4% of Its Portfolio, Still Below Its Own Historical Average
Key PointsAres Capital's non-accrual loans rose to 2.4% in the second quarter of 2026, up from 1.8% a year ago.
Ares Capital, a business development company (BDC) listed on NASDAQ under the ticker ARCC, reported that its non-accrual loans increased by 60 basis points year-over-year in the second quarter of 2026. While this represents a 2.4% of its portfolio, which is still below its historical average and the industry average, investors should remain vigilant.
Non-accrual loans, which arise when borrowers cannot meet their financial obligations, can pose a risk to the company's yield and overall stability. However, the current figure of 2.4% is relatively low and below Ares Capital's historical average since the Great Recession, which has been around 3%. The industry average is approximately 4%.
If this percentage continues to rise, it could signal deeper issues within the company. Despite the increase, the absolute percentage remains modest, and the company's non-accrual loans are not currently a major concern.
Written by urgent.news from Yahoo Finance's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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